Deed In Lieu - Chase 1st & Heloc $100k
1st & Heloc are not purchase $ - Seller is fixated on Deed In Lieu as if a magic bullet - wants that above a short sale. From my understanding, legal goes through the file 7-45 days, then investor looks at it. If it is a Deed In Lieu, does the investor have to take on the 2nd? Or will they make a decision to go foreclosure to wipe the slate clean of JR liens? Has anyone had experience with this one and what was the result?
Replies to This Discussion
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Permalink Reply by Karyl Moore on
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I'm not a lawyer but it's my understanding HELOC's never go away, not with a foreclosure, DIL or short sale - altho at least with a short sale you have the opportunity to negotiate it down to a lesser amount. It's a personal loan. And a deed-in-lieu has the same effect on their credit and FICO as a foreclosure whereas a short sale would be easier on them.
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Permalink Reply by joe beauchamp on
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I have not followed one through but since a deed in lieu means that the bank and seller agreed to give the title to the bank, it did not go through a formal foreclosure so, unless there are special laws for the deed in lieu, any liens on the property go to the bank.
The foreclosure is different - only gov't liens get to hang on after a foreclosure.
Because a deed in lieu is considered close to a foreclosure, I wouldn't doubt some interesting laws relating to it and they may be county or state dependent. If they follow normal contract law, then the deed in lieu does not remove liens. Guess I'll stay tuned to see if there is a different answer.. -
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